Which of these is the financing decision?
A)The form in which returns generated by the firm are passed on to equity holders
B)The mix of funding obtained from capital markets,in terms of proportional holdings of equity and liabilities
C)The level of directors remuneration
D)The manner in which funds raised in the capital markets are employed in productive activities

Question

Quizplus · Accepted Answer

The mix of funding obtained from capital markets, in terms of proportional holdings of equity and liabilities, is the financing decision. It is a crucial decision that determines the capital structure of the company, and how it raises money to run and grow the business. It involves deciding on the optimal balance between debt and equity financing, and the various sources of funds that are available to the firm.

Which of These Is the Financing Decision